Question $1$: Usefulness of accounting software package for small businesses

Richard Wang is the owner of a small women$$s apparel shop based in Wellington $$ manages busy

lives as a business owner and parent to his three children. Richard is a creative stylist spending

his days running the retail shop and sourcing interesting products for his customers. He

currently records his business transactions in an electronic spreadsheet. However, he must

stay up late doing the book$-$keeping until midnight every night to process transactions. He has

been experiencing significant delay with couple of errors in processing some transactions. It

takes time for him to get it sorted and he is always tired at the end of each day.

Richard attended a small business owners$$ function last month in Wellington where he heard

one of the keynote speakers discuss the benefit of using accounting software to process

business transactions. He is now looking to switch to a more efficient accounting software

package that will enable him to record his sales and purchases quickly and easily as they occur

during the day. This will provide him with more time to focus on expanding his business and to

spend with his family.

As his accountant, Richard has approached you to ask if the Xero accounting software would

be suitable for his business needs.

Required:

Explain how using Xero will enable Richard to efficiently record his business transactions, assist

him in monitoring the business$$s progress, and enable him to expand his business.